Punjab may waive off market fee on fruit, vegetables

Taking a step forward in agriculture marketing reforms, Punjab may soon waive off market fee on fruits and vegetables, which, due to its trickle down effect, would benefit the farmers and consumers.

The board of directors of the state agriculture marketing board has approved the abolition of market fees and has forwarded the proposal to the financial commissioner, development.

Currently, market fees is being charged at 2 per cent on the wholesale price of fruits and vegetables in mandis established by the state. In order to compensate the loss, the agriculture marketing board is contemplating to introduce usage charges (like charges for usage of platform, electricity, water, sewerage, display etc.) per annum on traders.

Sources added, “Our board of directors has approved the abolition of market fees and has sent the proposal to the financial commissioner development for approval. In order to compensate the losses, there are proposal to impose usage charges on traders per annum.”

This will not only enhance marketing efficiency of these perishables but also reduce their marketing cost and post-harvest losses, added the source.

Sources in the marketing board informed this would help the producers as well as consumers and that they have received a communiqué from the Government of India urging the state marketing board to waive off the fee on the lines of Madhya Pradesh and Uttrakhand. So, in order to provide competitive, barrier-free and effective marketing channels to get remunerative prices and ensure availability of agriculture produce, particularly fruits and vegetables at reasonable price, it was decided to waive off the market fee.

Due to charges, there were instances when traders were seen evading market fees. During 2011-12, the total market fees collected from fruits and vegetables was Rs 43.04 crore as compared to Rs 40.48 crore in 2010-11. Although the state witnessed increase in market fees as compared to previous year, but there had been significant amount of tax evasion. According to experts there is evasion of almost 50 per cent, which causes huge revenue losses to state exchequer.

As far production of fruits are concerned, during the year 2010-11, 0.70 lakh hectares were under fruits. Kinnow, orange, malta, lemon, guava, pear, mango and grapes are the main fruits grown in the state. The Total production under these fruits were 13.73 lakh metric tonnes for the year 2010-11.

Also, the total area under vegetable crops was 1.03 lakh hectares in 2010-11. Potato, with an area of 0.64 lakh hectres in 2010-11 was the major vegetable crop of the state, followed by other vegetables. The total production of potato during 2010-11 was 16.10 lakh metric tonnes.

According to agro experts if everything is streamlined, the integration of fruits and vegetables production with their processing will not only add value to the crops of farmers but will also open up big employment opportunities in the state.